NZ Post to deliver KFC in Tauranga

posted on 3rd April 2017

KFC is to trial home delivery in Tauranga via the New Zealand Post courier network. The company ultimately plans to offer home delivery from around one-third to half of its New Zealand stores.

The news comes after UberEats launched in Auckland earlier this year to offer home delivery of products from a wide range of local restaurants. According to an article in the latest issue of Franchise New Zealand magazine (available free in print or digital form here), the service has proved hugely popular as a business-builder for brands like Burger Wisconsin and Mexicali Fresh, although the cost to franchisees is considerable.

UberEats has not yet launched in Tauranga, and is thought unlikely to operate in some of the smaller regions of New Zealand for some time. New Zealand Post's courier network, on the other hand, is already well-established throughout the country. The trial will show whether food delivery might offer a new source of revenue for drivers and restaurants alike as the market for eating out increases but lower drink/driving tolerances reduce mobility - especially outside centres well-served by public transport.

According to a release from KFC owner Restaurant Brands Ltd, customers will be able to order on the fried chicken chain's website and have their food delivered by an NZ Post driver.

Restaurant Brands chief executive Ian Letele said the decision to partner with NZ Post was due to their expertise in logistics.

'NZ Post has an extensive delivery distribution network around New Zealand, and KFC is available in most towns nationwide. With the support of NZ Post, we hope to service the home delivery needs of many more KFC customers throughout New Zealand,' said Letele.

Mike Stewart, general manager of customer experience and innovation at NZ Post said, 'We are very excited to be supporting such a well-known and loved brand as KFC.

'Our many years' experience, and growing strength in on-demand delivery makes us the ideal provider.'

posted on 22nd March 2017

Settlement reached with Nosh franchisee

posted on 7th March 2017

Veritas Investments has reached a settlement with a franchisee who took down the signs and sought to terminate his Nosh franchise agreement after buying the business just days before Veritas disclosed it was under pressure from its bank to sell the chain.

Although details are confidential, it appears that the franchisee has paid Veritas rather than the other way round. The Nosh Group company has since been sold to a new goup of investors.

Mead's Constellation Drive Food Market had served notice to terminate its franchise, a move disputed by Veritas's Old NGL Ltd.

"Under the terms of the settlement, Constellation Drive Food Market has agreed to pay an undisclosed sum to Old NGL Limited to settle all debt, claims and disputes concerning that franchise," Veritas said in a statement to the NZX today.

Mead's lawyer Shane Rohde said he was unable to comment on the settlement.

NBR opens regulation debate again

posted on 26th February 2017

Virtual drive-through on the cards

posted on 26th February 2017

An Australian-based Mexican fast food chain has teamed up with Google to create an app-only ordering system aimed at speeding up service and maximising efficiency within its stores. Guzman y Gomez currently has 82 stores in Australia with 8 more planned to open this year, as well as stores in Singapore and Tokyo. It is planning to start franchising soon as a way of building funds for expansion in to the US market. There are no Guzman y Gomez outlets in New Zealand.

Mr Marks said the three drivers of growth would be the chain’s focus on food quality — it has committed to using 100 per cent sow stall-free pork, free-range chicken and grass-fed beef — drive-through and mobile ordering.

More than 20 per cent of GyG’s orders now come through its app, and Mr Marks said he hoped one day that would be 100 per cent. “Eventually we will have counterless stores,” he said.

“I want people to walk into GyG and it’s like an Apple Store, our salespeople are on their phones, everybody’s ordering on the app.”

GyG has been working with the Google’s Zoo team, described as a “creative think tank for brands and agencies”, to bring that vision to life.

Mixed prospects for local Chinese businesses

posted on 22nd February 2017

Domino's NZ reports strong first-half profit

posted on 16th February 2017

ASX-listed Domino's Pizza Enterprises, which franchises 106 stores in New Zealand, posted net profit after tax of A$59.7 million ($63.8m) for the six months to January 1 - up 30.8 per cent on the same period the year before. The New Zealand stores were a strong contributor to the results, said NZ general manager Scott Bush.

Group chief executive Don Meij attributed the result to its focus on digital innovation, easy payment solutions and investment in premium ingredients, as well as support for its recently upgraded menu.

In its results briefing, the company sought to reassure shareholders after revealing it had returned A$4.5m in unpaid wages to staff over the last three years and seen 26 franchisees leave after internal audits.

Meij said the there was "no correlation between store profitability and the underpayment of staff wages" and the company had zero tolerance for unethical behaviour.

"I make no apologies for expecting the highest standards from our franchisees," Meij said.

New event - Future-Proof your Franchise

posted on 8th February 2017

Veritas sells Nosh for c$4 million

posted on 3rd February 2017

Veritas, which was ordered to sell Nosh or close the outlets by its bank, has sold the struggling chain for $3.98 million. The buyers are apparently a group of anonymous NZ investors going under the name of Gosh Holdings. According to the Companies Office, the newly-formed Gosh is 100 percent owned by Sydney-based New Zealander Andrew Phillips.

Nosh currently has two stores operating under franchise, although the Constellation Drive franchisee recently removed all Nosh signage. No comment has been made so far on the position of franchisees under the new owners. Although Mr Phillips says there will 'certainly' be more stores, it is not clear whether these will be franchised or company-owned.

Phillips, a New Zealand corporate finance specialist who has been based in Australia for 15 years, helped a consortium of New Zealand investors buy Nosh.

He would not identify the "two or three people" behind the purchase, but said they were involved with consumer products in New Zealand.

The group thought Nosh was a "great brand" and believed there was an opportunity to develop it and the chain.

Phillips, the new Nosh chairman, said his Australian base was also a hint as to what the future might hold for the business.

In New Zealand, there would be an internal restructure, but no change for customers with all stores open for business.

"We'll grow the brand there and then assess our options."

He said the company and its overhead costs needed to be looked at, but would not go into any possible job losses.

"We see this as a good opportunity.

"There will be more stores, certainly."

Phillips was confident it could turn Nosh around, and said private ownership would prove a better fit than being publicly listed.

Booze delivery co uses McDonald's to promote

posted on 1st February 2017

An Auckland home delivery company which offers to collect fast food as long as you order alcohol as well is has been taken to task for using McDonald's images on its website without permission. Alcohol abuse watchdogs have expressed concern about the service. The' On The Rocks' website reportedly has no age identification check and lists a number of fast food options that can be ordered, including kebabs, pizza and McDonald's.

A McDonald's spokesman said it was not aware On The Rocks would be delivering its food.

"Aside from Menulog, which is part of our home delivery trial in New Lynn and Glenfield, we don't have any formal relationship with delivery companies," the spokesman said.

He said On The Rocks was using McDonald's images on its website without permission.

"While businesses are able to offer the delivery service, they are not allowed to use our trademarks in their marketing.

"Typically we would ask businesses using our trademarks without our permission to stop doing so," the spokesman said.

The spokesman said he was not aware of any other company selling alcohol alongside McDonald's in New Zealand.